FY 2019 RESULTS 1
CUSTOMERS 22.8 MILLION OUR REGIONAL 342 BRANCHES PRESENCE 1,055 ATMS, 23,302 AGENTS & MERCHANTS Banking Businesses: • KCB Bank Kenya STAFF • KCB Bank Tanzania • KCB Bank South Sudan 7,584 • KCB Bank Rwanda • KCB Bank Uganda • KCB Bank Burundi KCB BANK KENYA (ETHIOPIA • National Bank of Kenya REPRESENTATIVE KCB BANK • Ethiopia Rep. Office OFFICE ) SOUTH SUDAN KCB BANK KENYA Other Investments: KCB BANK NATIONAL BANK OF KENYA • KCB Capital Limited UGANDA KCB INSURANCE AGENCY KCB FOUNDATION • KCB Insurance Agency KCB CAPITAL • KCB Foundation KCB BANK RWANDA • Kencom House Limited KCB BANK KCB BANK BURUNDI TANZANIA 2
OUR FOOTPRINT Ethiopia Branches 11 South ATMs 3 Agents 25 (Representative Office Sudan with 1 staff) Staff117 Touch Points: Branches 15 Uganda ATMs 18 Agents 522 Branches 282 Staff 330 ATMs 454 Kenya Agents 14,332 Branches 14 Staff 6,469 ATMs 25 Rwanda Agents 522 Staff 253 Branches 14 ATMs 15 T anzania Branches 6 Agents 144 ATMs 7 Staff 287 Burundi Agents 185 Staff 127 3
STABLE CREDIT RATING AGENCY SOVEREIGN KCB BANK KENYA RATINGS Ratings confirmed in August and B2 (Stable) B2 (Stable) September 2019 B+/B B+/B 4
Acquisition of KCB completed the takeover of National Bank of Kenya 2019 NBK HIGHLIGHTS Sustained interest in the sector with the multiple announcements M&As of mergers and acquisitions. Renewed focus on the sector following the repeal of the rate caps INTEREST RATE that limited the maximum lending rates to 400bps above CBR. CAP Guidelines on the adoption of customer-centric business models by BANKING banks, risk-based credit pricing, enhanced transparency & information CHARTER disclosure and entrenching an ethical culture within banks. CBK concluded the withdrawal of the older 1,000 shillings banknotes DEMONETIZATION and introduced new notes. 5
AGRIBUSINESS KCB 2JIAJIRI KENYA 2JIAJIRI BENEFICIARIES 17,570 PER SECTOR PROGRAMME BUILDING AND CONSTRUCTION HIGHLIGHTS 9,001 BEAUTY AND PERSONAL CARE 3,480 AUTOMOTIVE ENGINEERING 2,083 11,564 beneficiaries accessed DOMESTIC SERVICES Business Development 1,638 Support. 34,844 ICT BENEFICIARIES TO 315 KShs. 144 million DATE disbursed to beneficiaries to support their business enterprises. Male : Female Ratio Kenya 34,087 ‘Young Africa Works’ 54:46 Tanzania KShs 10 billion funding 357 from the MasterCard Foundation Rwanda to scale up the bank’s 2jiajiri job 300 Uganda creation programme 100 6
George Odhiambo, owner, Pentagon View Investments, Shanzu, Mombasa • KCB FOUNDATION George trained in carpentry at Mombasa Technical Training School under 2jiajiri programme. CASE STUDIES • Used KShs 100,000 2jiajiri funding to expand his business and now has access finance and financial institutions, thanks to 2jiajiri BDS support. • Generates an income of KShs 50,000 per month. • Employs two and also offers apprenticeship to youth. Tom Mogaka, Owner Smart Digital Electricals, Umoja Innercore, Nairobi • Trained in electrical installation at Eastlands College of Technology under 2jiajiri. • Granted toolkits that have expanded his business. • The go-to fundi in Umoja Estate as well as contractor for DSTV/GOTV installations, basic repairs, TV mounting and aerial installations. • Generates KShs 100,000 monthly income from his business. 7
Mainstreaming our 8 Adopted SDG’s SUSTAINABILITY • 182 Business Bankers, Relationship UPDATE Managers and Credit Analysts trained on Environmental, Social Risk screening and Assessment. • 90.5% of business units have identified key performance indicators for tracking and monitoring of the 8 SDG’s. UNEP FI – 6 Principles for RESPONSIBLE BANKING: Launched 2019 Impact & Clients & Alignment Target Setting Customers Transparency Governance Stakeholders & & Culture Accountability 8
2019 GROUP GLOBAL BUSINESS OUTLOOK 2019 GLOBAL FINANCE AWARDS 2019 Best Digital Transformation in Online Banking AWARDS Best Bank in Kenya Best CSR Initiative – 2jiajiri GLOBAL BANKING AND FINANCE AWARDS 2019 BRAND AFRICA AWARDS 2019 Best Corporate Governance Bank in Kenya Most Admired Financial Services Brand Best Customer Service Bank in Kenya EUROMONEY AWARDS FOR EXCELLENCE 2019 AFRICAN BANKER AWARDS 2019 Best Regional Bank in East Africa East Africa’s Best Bank for SMEs Innovation in Banking Kenya's Best Bank INTERNATIONAL CUSTOMER EXPERIENCE THE BANKER MAGAZINE – TOP 1000 AWARDS 2019 BANK RANKINGS 2019 Gold Award for the Best Customer Experience Team 717 th Globally Gold Award for Customer Experience Leadership 21 st Africa (Highest mover Africa) Gold Award for the Best Digital Strategy 9
Macro-Economic Highlights 10
MACROECONOMIC HIGHLIGHTS Kenya 18.3 8.4 9.6 7.1 8.6 8.7 6.6 5.7 5.6 5.1% 4.9 4.8 4.7 4.3 5.9 7.6 6.4 3.2 3.1 7.1 4.0 1.8 1.0 AGRICULTURE MANUFACTURING REAL TRADE EDUCATION TRANSPORT & FINANCIAL & CONSTRUCTION ICT HEALTH MINING& ESTATE STORAGE INSURANCE QUARRYING Q3 19 GDP Growth Rate (%) Contribution to GDP Q3 19 (%) Q3 19 Growth (%) *Source: Kenya National Bureau of Statistics 11
MACROECONOMIC HIGHLIGHTS GDP Growth 2019 Projected (%) Regional GDP Growth 8.7 6.8 7.4 6.1 5.8 5.9 3.3 Ethiopia Rwanda Tanzania Uganda Burundi South Sudan 2019 East Africa Projected GDP Growth Rate( % ) Source: AfDB 12
Inflation Evolution(%) Inflation Target Target Non Food MACROECONOMIC rate Upper Lower Fuel HIGHLIGHTS 7.5 6.58 6.27 5.82 5.70 5.56 5.49 5.00 4.95 Kenya 4.70 4.35 4.14 3.83 3.51 2.65 2.5 JAN FEB MAR APR M AY JUN JUL AUG SEP OCT NOV DEC 2 0 1 9 2 0 1 9 2 0 1 9 2 0 1 9 2 0 1 9 2 0 1 9 2 0 1 9 2 0 1 9 2019 2 0 1 9 2 0 1 9 2019 Interest Rates Evolution (%) 12.50 12.51 12.47 12.47 12.39 12.38 9.0 9.0 8.5 7.19 7.08 7.41 7.17 7.02 7.17 6.65 6.90 6.62 6.56 6.60 6.65 JAN FEB MAR APR M AY JUN JUL AUG SEP OCT NOV DEC 2 0 1 9 2 0 1 9 2 0 1 9 2 0 1 9 2 0 1 9 2 0 1 9 2 0 1 9 2 0 1 9 2019 2 0 1 9 2 0 1 9 2019 Sources: Central Bank of Kenya 91 day bill Average Lending Rate CBR Kenya National Bureau of Statistics 13
USD/KShs Average Monthly Exchange Rate 103.8 103.7 MACROECONOMIC 103.3 103.2 HIGHLIGHTS 102.4 101.7 101.6 101.5 101.2 101.1 Currency 100.4 100.2 Movement JAN FEB MAR APR M AY JUN JUL AUG SEP OCT NOV DEC 2 0 1 9 2 0 1 9 2 0 1 9 2 0 1 9 2 0 1 9 2 0 1 9 2 0 1 9 2 0 1 9 2019 2 0 1 9 2 0 1 9 2019 Exchange Rates to USD 3,712 3,660 2,300 1,881 2,293 1,800 922 158 876 130 31 28 2018 2019 Rwanda Ethiopia Tanzania Uganda Burundi South Sudan 14
Current Account Balance (% of GDP) MACROECONOMIC HIGHLIGHTS -4.6 -4.8 -5.0 Kenya -6.2 -6.7 -10.5 Current account 2018 deficit at 10 year low 2019 2014 2015 2016 2017 12 Month Private Sector Growth Diaspora emittances 7.3 2019: $ 2,796M 7.1 7.0 4% 6.6 6.3 2018: $ 2,697M 6.1 5.2 4.9 4.4 4.3 Tourism Earnings 3.4 3.0 2019: KShs 163.6B 39% 2018: KShs 157.4B JAN FEB MAR APR M AY JUN JUL AUG SEP OCT NOV DEC 2 0 1 9 2 0 1 9 2 0 1 9 2 0 1 9 2 0 1 9 2 0 1 9 2 0 1 9 2 0 1 9 2019 2 0 1 9 2 0 1 9 2019 15
Channel Performance 16
December2018 OUR CHANNEL AGENCY, BRANCH ATMS INTERNET MOBILE TELLER CONTRIBUTION 45% 1 1% AND POS 12% 32% 97% of December2019 transactions performed AGENCY, BRANCH outside the ATMS INTERNET MOBILE TELLER 78% AND POS 4% 3% branch 15% 126% growth 23% decrease in average transactions 23% decrease in Number of branch in non-branch / tellerper day transactions. revenue to over KShs 12B Dec 2018 71.5 Dec 2018 16.2 Dec 2019 55.2 Dec 2019 12.5 Number of Branch Transactions( M ) A vg. Transactions / T eller perday 17
V alueof Transactions: Mobi Service No. of transactions Mobile Revenue (KShs.B) (M) (KShs.M ) OUR CHANNEL 9,873 CONTRIBUTION 281.3 3,175 404 331 290% 62.1 236 Growth in 52.0 2,261 Total Mobile Loans FY18 FY19 FY 17 FY18 FY19 FY 17 FY19 FY17 FY18 Advanced MobileTransaction type(%) FY 2019 FY 2018 212.1B 49.9 48.1 33.7 32.4 54.4B 16.5 16.4 1.6 1.4 2018 2019 B2C B2B C2B LIPA KARO 18
V alueof Transactions No. of transactions Agency Revenue (KShs.M ) (KShs.B) (M) OUR CHANNEL CONTRIBUTION 820 542 45.3 481 300 AGENCY 34.7 204 22.8 127 47% FY 17 FY18 FY19 FY 17 FY18 FY19 Growth in FY17 FY18 FY19 Agency Agency Transaction type(%) Banking FY 2019 FY 2018 Value 64.6 37.2 29.9 15.8 15.4 14.4 12.1 7.8 0.8 1.6 0.1 0.3 CASH CASH SCHOOL BALANCE BILL OTHERS* DEPOSIT WITHDRAWAL FEES ENQUIRY PAYMENT *Others: Account opening, mini statement, load cards and Funds transfer 19
OUR CHANNEL CONTRIBUTION ATM revenue No. of transactions V alue of Transactions (KShs M) (KShs.B) (M) ATM 17% 496 486 Growth in 152 ATM 465 Value 130 15.4 15.0 86 14.0 Deposits of KShs 59.7B collected through 105 intelligent ATMs FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 20
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